Emerging from a protracted civil war since 2002, Angola was for
several years one of the fastest growing economies in the world. In
the past decade, it has often seen double-digit rates of GDP growth.
The country also experienced a post-civil war reconstruction boom,
aided by the spending of oil revenues and a US$ 7 billion credit line
from China. Large credit lines have also been received from Brazil,
Portugal, Germany, Spain, Canada and the EU. That said, a shortage of
construction materials in the construction industry is proving a
significant hindrance to the process. The country is also faced by a
number of other prominent challenges. The economy has a huge
structural dependence on oil. However in 2009 and 2010, the
country experienced a decrease in oil revenues as a result of the
decline in oil prices that resulted in the drying up of liquidity, increased
interest rates and delays in payments on Government contracts. The
country is currently on a path of recovery and growing from an
estimated GDP growth rate of 3.4% in 2010 to a prospective rate of
7.5% in 2011. Angola suffers from considerable inflation pressures –
over 14 per cent in 2009. This is expected to decrease to 2011 to
11.7%.
